Overview

• AB 831 prohibits online social casinos from offering free sweepstakes entries for cash prizes and takes effect on January 1.
• The bill passed the Legislature without a single opposing vote, with backing from major tribal casino operators Morongo and Yaamava.
• Industry group SGLA called the law flawed and rushed and cited Eilers & Krejcik estimates of a $1 billion hit to the economy and $200–$300 million in lost annual tax revenue.
• Victor Rocha of the Pechanga Band of Indians said sweepstakes lobbying efforts failed and claimed the industry has already lost roughly $2 billion.
• Some operators have begun scaling back in California ahead of the effective date, as trade groups press for regulatory alternatives and note similar stances in Montana and New Jersey.